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| The Tax Publishers2020 TaxPub(DT) 4737 (Mum-Trib) INCOME TAX ACT, 1961
Section 36(1)(iii)
Following the decision rendered in assessee's own case for the assessment year 2012-13 in Muthoot Agri Development & Hospitality (P) Ltd. v. Dy. CIT, [ITA No. 2249/MUM/2018, dt. 29-7-2019], interest on loans taken from director and inter-corporate deposit was allowed.
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Business deduction under section 36(1)(iii) - Interest on loan and inter-corporate deposits - Disallowance on interest made by AO -
Assessee company was engaged in the business of activities related to agriculture, sericulture, horticulture, aquaculture. It took the loan from the Director and also took the inter Corporate Deposits and paid the interest. The said interest was disallowed on the ground that loan was not incurred wholly and exclusively for the purpose of business activities.Held: The issue was duly covered by the assessee's own case for the assessment year 2012-13 Muthoot Agri Development & Hospitality (P) Ltd. v. The Dy. CIT-15 (2) (2) [ITA No. 2249/MUM/2018, dt. 29-7-2019]. Therefore, following the same issue was decided in favour of assessee.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
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